India: Textile & Clothing Industry Valued at ₹172 Billion with Strong Domestic Market Share

The 50% U.S. tariff will impact nearly 70% of India’s textile and clothing exports to the U.S., which currently accounts for one-third of total exports.      

India’s textile and clothing industry is valued at ₹172 billion, including ₹37 billion exports and a strong domestic market of ₹135 billion.

A domestic growth of 7–8% can help offset the ₹10–11 billion export loss expected from the U.S. market.

Cotton production has fallen to 295 lakh bales against a requirement of 318 lakh bales, causing the lowest closing stock in history and risking raw material shortages.                     The sector, employing nearly 35 million people, depends on the 11% cotton import duty exemption extended till December 31, 2025 to ensure globally competitive cotton prices.